Note: This article first appeared in the September 2024 issue of CPI Antitrust Chronicle
When can EU competition law compel a company to supply its competitors, over-riding its contractual freedom and property rights? Recent EU court rulings have clarified that the strict “essential facilities” test under Bronner applies only to out¬right refusals to deal. This increases the liability risk for dominant firms, as other conduct involving elements of refusal to deal may be abusive even when the input in question is not indispensable. These developments highlight the importance of companies carefully considering their compliance strategies and ensuring their practices align with EU competition law. Firms with significant market power must be particularly cautious when handling requests for access to products or services, especially in cross-border and parallel trade contexts. This feature CPI Antitrust Chronicle article, authored by Wilson Sonsini’s Jindrich Kloub and Laurine Daïnesi Signoret, explores these issues in detail, including the relevant legal tests, agency guidance, and recent enforcement actions.
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